NEW YORK An
Englewood, Colo.-based electronics recycling company has been
fined $4.5 million and its chief executive officer was
sentenced to 30 months in prison for illegal exports of
electronic scrap and fraud.
U.S. District Court
Judge William J. Martinez issued his verdict against Executive
Recycling Inc. and owner and chief executive officer Brandon
Richter on July 23 for their roles in a fraudulent scheme
related to the disposal and exportation of electronic waste to
The sentencing came
one week after the companys former vice president, Tor
Olson, was sentenced to 14 months in prison (
amm.com, July 19).
Richter was ordered to
serve 30 months in federal prison, followed by three years of
supervised release. Richter was also ordered to pay a $7,500
fine and $70,144 in restitution. The court also ordered
$142,241.10 in asset forfeiture.
Richter, and Olson were convicted in December 2012 of multiple
counts of mail and wire fraud and environmental crimes related
to the illegal disposal of electronic waste, smuggling, and
obstruction of justice, following an 11-day trial.
According to the media
statement released by attorneys and agents pursuing this case,
a significant portion of electronic waste collected by
Executive Recycling were cathode ray tubes (CRTs). From 2005 to
2008, the company exported about 160 cargo containers carrying
a total of more than 100,000 CRTs.
The agencies said that
between February 2005 and January 2009, the company "knowingly
devised and intended to devise a scheme to defraud various
business and government entities who wanted to dispose of their
electronic waste, and to obtain these business and government
entities money by means of materially false and
The company falsely
advertised to customers that they would dispose of electronic
waste in compliance with all local, state and federal laws and
regulations. Specifically, the defendants falsely represented
that the defendant company recycled electronic waste "properly,
right here in the U.S." They also stated that they would not
send the electronic waste overseas but were later found to have
exported the material to China.
"The defendants in
this case not only caused actual harm to the environment by
shipping electronic waste overseas for dumping, they defrauded
their customers by falsely claiming to be disposing of that
waste in an environmentally safe way," Colorado U.S. Attorney
John Walsh said.